NAICS 423120 Quarterly Industry Report
Motor Vehicle Supplies and New Parts Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 423120Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 423120 integrates data from the U.S. Census Bureau[5] economic surveys, Bureau of Labor Statistics[6] employment data, and SBA size standard publications[7]. Our research team analyzes aftermarket distribution trends, vehicle park demographics, and parts demand drivers to provide valuation context for automotive parts wholesale operations. Updated quarterly, each data point is traced to its originating government or institutional source.
Industry Snapshot
Key metrics for the motor vehicle supplies and new parts merchant wholesalers industry.
Industry Definition & Overview
Motor Vehicle Supplies and New Parts Merchant Wholesalers (NAICS 423120) encompasses establishments primarily engaged in the merchant wholesale distribution of new motor vehicle parts, accessories, tools, and equipment. These distributors purchase automotive components from manufacturers and resell them to repair shops, parts retailers, fleet maintenance operations, and other wholesale buyers.
The automotive aftermarket parts distribution chain relies heavily on this industry segment. Distributors maintain extensive inventories of replacement parts covering brakes, filters, electrical components, engine parts, suspension components, body panels, and accessories for a wide range of vehicle makes and models. According to the U.S. Census Bureau[5], this classification specifically covers new parts distribution, with used parts assigned to NAICS 423140 and tires to NAICS 423130.
The industry includes national program distribution groups, regional warehouse distributors, and local jobber operations that provide same-day delivery to repair shops. Rapid parts availability drives competitive advantage because vehicle repair shops depend on quick access to the right components. Electronic cataloging, inventory management systems, and delivery logistics have become critical capabilities. Many distributors operate hub-and-spoke warehouse networks to support next-day or same-day delivery across their service territories. The rise of advanced driver-assistance systems and electric vehicles has expanded the range of specialized components flowing through wholesale channels, including sensors, control modules, and high-voltage battery service parts.
What's Included in This Industry
- New automotive replacement parts wholesale distribution
- Motor vehicle accessories and trim wholesale operations
- Automotive electrical component wholesale distribution
- Brake system parts and components wholesale operations
- Engine parts and gasket wholesale distribution
- Suspension and steering parts wholesale operations
- Automotive tool and equipment wholesale distribution
- Automotive paint and body supply wholesale operations
- Heavy truck parts wholesale distribution (new parts)
- Automotive filter and maintenance parts wholesaling
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Durable Goods | 423 |
| Industry Group | Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers | 4231 |
| NAICS Industry | Motor Vehicle Supplies and New Parts Merchant Wholesalers | 42312 |
| National Industry | Motor Vehicle Supplies and New Parts Merchant Wholesalers | 423120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 423110 | Automobile and Other Motor Vehicle Merchant Wholesalers | Automobile and motor vehicle merchant wholesalers distribute complete vehicles rather than replacement parts and accessories through separate wholesale channels |
| 423130 | Tire and Tube Merchant Wholesalers | Tire and tube merchant wholesalers handle a specific vehicle component category excluded from new parts distribution under this classification |
| 423140 | Motor Vehicle Parts (Used) Merchant Wholesalers | Used motor vehicle parts merchant wholesalers distribute salvaged and recycled components rather than new replacement parts from manufacturers |
| 441330 | Automotive Parts and Accessories Retailers | Automotive parts and accessories retailers sell new parts directly to consumers and DIY customers rather than through wholesale distribution channels |
| 811121 | Automotive Body, Paint, and Interior Repair and Maintenance | Automotive body, paint, and interior repair shops purchase replacement body panels, paint supplies, and trim parts from wholesale distributors |
| 811198 | All Other Automotive Repair and Maintenance | All other automotive repair and maintenance shops consume new replacement parts and supplies purchased through wholesale distribution channels |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.6% | 1,806 |
| 2 | Texas | 8.0% | 995 |
| 3 | Florida | 7.7% | 952 |
| 4 | Michigan | 5.4% | 669 |
| 5 | New York | 5.0% | 617 |
| 6 | Pennsylvania | 3.9% | 481 |
| 7 | Illinois | 3.8% | 468 |
| 8 | Ohio | 3.7% | 453 |
| 9 | Georgia | 3.2% | 399 |
| 10 | New Jersey | 3.0% | 366 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
648
Total SBA Loans
$344.7M
Total Loan Volume
$532K
Average Loan Size
11 yrs
Average Loan Term
10.28%
Average Interest Rate
3,992
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[7] classifies Motor Vehicle Supplies and New Parts Merchant Wholesalers under NAICS 423120 with a size standard of 200 employees. Industry industry includes large national distributors that exceed this threshold alongside thousands of smaller regional and local distributors. Most independent jobbers and regional warehouse distributors qualify as small businesses under the SBA ceiling. These firms can access SBA lending programs[8] for inventory expansion, warehouse facility investment, and delivery fleet upgrades. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Cadence Bank | 40 | $46.0M | $1.2M |
| 2 | Newtek Bank, National Association | 136 | $43.8M | $322K |
| 3 | Byline Bank | 8 | $40.0M | $5.0M |
| 4 | JPMorgan Chase Bank, National Association | 24 | $34.9M | $1.5M |
| 5 | Valley National Bank | 8 | $20.1M | $2.5M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 423120?
NAICS 423120 covers merchant wholesalers distributing new automotive replacement parts, accessories, tools, and equipment. These include national program distribution groups, regional warehouse distributors, local jobbers providing same-day delivery, and specialty parts wholesalers. Per the U.S. Census Bureau[5], the code covers only new parts; used parts fall under 423140 and tires under 423130.
How is NAICS 423120 organized within the classification hierarchy?
This code belongs to Industry Group 4231 (Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers), Subsector 423 (Merchant Wholesalers, Durable Goods), and Sector 42 (Wholesale Trade). It shares Industry Group 4231 with 423110 (vehicles), 423130 (tires), and 423140 (used parts).
What is the SBA size standard for NAICS 423120?
The SBA[7] sets the size standard at 200 employees for Motor Vehicle Supplies and New Parts Merchant Wholesalers. Firms below this threshold qualify as small businesses for federal contracting and SBA loan eligibility.
Which NAICS codes are most closely related to 423120?
Sibling codes 423110 (vehicles), 423130 (tires), and 423140 (used parts) cover other motor vehicle wholesale segments. Automotive parts retailers (441330) handle consumer sales. Per NAICS reference materials, the distinction from retail codes is the wholesale function of selling to businesses rather than individual consumers.
What industries have the strongest ties to new auto parts wholesalers?
General automotive repair shops (811111) are the largest customer segment. Body and paint shops (811121) purchase body panels and paint supplies. Automotive retailers (441330) source inventory through wholesale channels. Motor vehicle parts manufacturers produce the components that flow through wholesale distribution networks to service locations.
What specific activities are included in NAICS 423120?
Activities include warehousing and distributing new automotive replacement parts, managing electronic parts catalogs and ordering systems, operating delivery fleets for same-day parts supply, distributing automotive accessories and trim, wholesaling automotive tools and shop equipment, and supplying paint and body shop materials. According to Census Bureau classifications[5], the merchant wholesale function of taking title to goods is the defining activity.
Can new auto parts wholesalers access SBA loans?
Yes. Parts wholesalers with fewer than 200 employees qualify for SBA loan programs[8] including 7(a) loans for inventory financing and working capital, 504 loans for warehouse facilities and delivery vehicles, and microloans for smaller operational investments. These programs help independent distributors maintain competitive inventory levels.
Where are motor vehicle parts wholesalers concentrated in the United States?
Parts distribution operations spread across the country to serve local repair shop markets, with warehouse concentrations near major metropolitan areas. National distribution centers cluster along interstate corridors in the Midwest and Southeast. States with large vehicle populations such as California, Texas, Florida, New York, and Pennsylvania support higher densities of parts wholesale operations.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA size standard publications sba.gov
- [8]SBA lending programs sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
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